(Yicai Global) July 23 -- Shares of Jianglong Shipbuilding, whose major clients include China's marine law enforcement department, hit the exchange-imposed upper daily limit when trading resumed this afternoon after the company said it had successfully developed China's first methanol-powered vessel.
The Zhuhai-based company's stock price [SHE:300589] gained 10 percent to close at CNY13.28 (USD1.93). The benchmark Shenzhen Component Index rose 0.6 percent.
Jianglong Shipbuilding launched the vessel, for which it owns the indigenous intellectual property rights, this morning in Zhongshan, a city in the south of the Pearl River Delta in Guangdong province, according to a company statement.
It did not elaborate on the technicalities of the ship's power system, but quoted a report from the State Key Laboratory of Engines at Tianjin University. When compared with a same size diesel boat the new vessel cuts carbon oxide emissions 96 percent, hydrocarbon emissions 99 percent, exhaust smoke 54 percent, and boosts cost effectiveness more than 10 percent, it said.
The global ship-building industry and owners have been exploring the use of clean fuels in response to increasingly stringent environment protection laws. In 2016, Waterfront Shipping formed an ocean-going fleet of seven 50,000-ton load vessels, the world's first methanol-fueled ships, made by South Korea's Hyundai Mipo Dockyard and Japan's Minaminippon Shipbuilding.
During its trial production period, Jianglong Shipbuilding filed for a number of invention and utility model patents and formed a key technology research and development design team, the firm said, adding that it will commercialize the vessel based on market demand.
Jianglong Shipbuilding is a leading maker of small- and medium-sized public service and business purpose ships in China. It set up a joint venture with Australia's Austal, the world's largest speed boat maker, in 2016 to develop and build high-end craft with aluminum alloy, according to the firm's website.